Property prices in Cyprus have fallen significantly during the second quarter of 2013, according to new figures released by the Royal Institute of Chartered Surveyors (RICS) Cyprus Property Price Index.
The index shows that average prices for houses fell by 5 per cent in the second quarter of this year, while apartment prices plummeted by 4.2 per cent on average.
Year on year, house prices have fallen by a whopping 11.2 per cent since the second quarter of 2012, while the price of a residential apartment has slumped by 12.6 per cent in the same period.
According to the RICS Cyprus, the price declines can be directly attributed to the Eurogroup’s decision in March to ‘bail-in’ the depositors of two of Cyprus’ largest banks, to close down Laiki Bank, and to impose capital restrictions – all of which has left bank finances unavailable and deposits being blocked in bank accounts.
Currently, local demand for Cypriot property is near an all-time low, and it is only purchases made by overseas buyers which have stopped the prices from falling even further.
Some of the sharpest house price falls during the second quarter were recorded in Larnaca, where overall house values fell by 9.2 per cent from the first quarter of the year. Paralimni/Famagusta also witnessed price falls above the nation average, with prices there declining by 6.6 per cent in a three-month period.
In terms of apartment prices, the biggest quarterly falls were seen in Paralimni/Famagusta, where prices were down 6.7 per cent, followed by Nicosia, down 5.2 per cent.
The average price of a house in Cyprus is currently 349,125 euros, the latest Property Index shows, while an apartment is 112,318 euros.